Powering the future: How ARENA is transforming household energy consumption

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Image credit: ARENA's Twitter

The Australian Renewable Energy Agency (ARENA) is advancing efforts to reshape how households consume and manage energy, supporting new technologies aimed at reducing emissions and stabilising the electricity grid.

Since 2012, ARENA has invested in projects exploring how distributed energy resources, demand response, and flexible demand technology can contribute to the clean energy transition. 

Over the past six years, the agency has allocated $144 million to 49 projects focused on improving home energy use, with the goal of increasing efficiency and reducing costs for consumers.

One of the latest initiatives, Electrify 2515, is being led by Brighte in collaboration with Rewiring Australia and Endeavour Energy. 

The project, launched in October 2024 with $5.41 million in funding from ARENA, aims to equip 500 households in the 2515 postcode of Northern Illawarra, New South Wales, with efficient electric appliances, rooftop solar, household batteries, and Home Energy Management Systems (HEMS).

The HEMS device is central to the project, allowing households to optimise their electricity consumption based on real-time signals from the grid. 

By adjusting usage patterns, the system helps balance supply and demand, potentially preventing grid instability and reducing power costs. 

The first of five planned progress reports on Electrify 2515 was released in November 2024, highlighting key findings, including the importance of community engagement, the need for accessible and trusted information, and challenges in integrating smart energy devices with existing household appliances.

Community response to the project has been notable, with over 600 locals attending the launch event and more than 250 applications submitted for participation. 

However, challenges remain, such as low participation from strata renters and landlords, as well as a learning curve for installers unfamiliar with HEMS technology.

Australia’s transition to renewable energy presents opportunities and challenges, particularly due to the intermittent nature of solar and wind power.

Flexible demand technology, as championed by ARENA, is seen as a key solution to managing fluctuations in energy supply. 

According to the agency, widespread adoption of this technology could save consumers up to $18 billion by avoiding peak electricity costs and reducing the need for expensive infrastructure upgrades.

ARENA continues to explore opportunities to expand these technologies across the country, with its funding processes guided by strategic priorities and strict assessment criteria. 

More information about available funding and ongoing projects can be found on ARENA’s official website.